Quotient Technology (QUOT) Reports In-Line Q4 EPS, Revenues Beat; Offers Q1 & FY20 Revenue Mid-Point Guidance Above Consensus

Quotient Technology (NYSE: QUOT) reported Q4 EPS of ($0.11), in-line with the analyst estimate of ($0.11). Revenue for the quarter came in at $118.5 million versus the consensus estimate of $109.64 million.

Fourth Quarter 2019 Financial Results

• Total revenue was $118.5 million in Q4 2019, an increase of 11% over Q4 2018.
• GAAP net loss for Q4 2019 was $9.6 million, compared to GAAP net loss of $4.5 million in Q4 2018.
• Adjusted EBITDA was $11.5 million in Q4 2019, compared to $16.5 million in Q4 2018.
• Generated $1.8 million in cash from operations in Q4 2019, compared to $13.8 million in Q4 2018.

“I couldn’t be more pleased with how we ended the year, as we continued to grow our core business, deliver new products and expand our network. Over the last six months, we’ve strengthened our leadership team and established key operating priorities to drive the business forward. We believe we are now on course for steady growth in revenues, gross margin and Adjusted EBITDA,” said Steven Boal, CEO.

Boal added, “Retailers and brands are now moving quickly to drive omni-channel initiatives forward. This dynamic has created a tailwind for our growth, as CPGs plan to stop spending in offline free-standing inserts and aim to meet retailers’ asks for more digital marketing spend.”

GUIDANCE:

Quotient Technology sees Q1 2020 revenue of $106-109 million, versus the consensus of $107.39 million.

Quotient Technology sees FY2020 revenue of $485-495 million, versus the consensus of $485.13 million.

• Starting on April 1, 2020 we will modify the way we deliver a portion of our media business and will no longer control certain services before they are transferred to our customers. This change will drive a portion of our media revenues to be recognized net of certain costs in Q2, Q3 and Q4 of 2020, whereas in FY2019 these revenues were recognized on a gross basis. As a result of these changes, we expect gross margins to increase, with no direct impact to our Net Income or Adjusted EBITDA.
• Our Q1 2020 outlook, detailed below, is not impacted by these changes. Our full year 2020 outlook below reflects these changes and projects revenue from this portion of our media business on a net basis effective April 1, 2020. Had we not made these changes the projected 2020 revenues would have been approximately $33.0 million higher, which would have resulted in revenue growth of approximately 20% as compared to 2019.
• As of today, Quotient is providing the following business outlook.
• For the first quarter 2020, total revenue is expected to be in the range of $106.0 million to $109.0 million. Adjusted EBITDA for the first quarter of 2020 is expected to be in the range of $1.0 million to $3.0 million.
• For the full year 2020, total revenue is expected to be in the range of $485.0 million to $495.0 million. Adjusted EBITDA for the full year 2020 is expected to be in the range of $58.0 million to $62.0 million. Adjusted EBITDA is expected to grow throughout the year with the fourth quarter Adjusted EBITDA margin forecasted to be in the high teens.

For earnings history and earnings-related data on Quotient Technology (QUOT) click here.

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